Peachtree Adds Seven Hotels to Portfolio
July 30, 2013 - Peachtree Hotel Group announced that it invested more than $50 million in seven hotels during the 2013 second quarter and is on track to exceed its 2013 acquisition and investment goals before the end of the third quarter.
“The six hotels acquired in the first quarter already are exceeding our performance expectations due to implementation of revenue management strategies and cost control disciplines. Our first quarter activity included the acquisition of six assets, while the second quarter was dominated by note purchases and direct loan originations,” said Greg Friedman, Peachtree CEO. “We set a 2013 goal of growing our total portfolio by 15 assets, and at the mid-point of the year, we have outpaced our own aggressive plan. Our ability to invest in all levels of the capital stack; equity, senior debt, mezzanine, etc. enables us to fully participate in this volatile market. We continue to have a healthy appetite for all areas of engagement and have both the financial capacity and the professional capabilities to continue executing at this pace.”
Peachtree acquired five first mortgage notes secured by five hotel properties with 842 rooms across three states.
Stonehill Strategic, an affiliate of Peachtree, originated two new first mortgages on select service assets in Florida, bringing the Peachtree portfolio to 49 hotel assets and notes.
“The six hotels acquired in the first quarter already are exceeding our performance expectations due to implementation of revenue management strategies and cost control disciplines,” said Mitul Patel, chief operating officer. “With this added portfolio depth, strong performance metrics, and a rebounding travel sector, I fully expect this to be a breakout year for our company.”
Jatin Desai, chief investment officer, noted that the company already has three hotels under contract with closings scheduled for Q3; a Fairfield Inn & Suites and two Hilton Garden Inns.
“Because we are well funded and staffed to perform, our team is able to quickly source, underwrite, and execute,” said Desai. “We are demonstrating to the market that a nimble, comprehensive investment approach is a tremendous value to owners and operators alike.”
Peachtree Hotel Group invests, operates and develops premium-branded, select and limited-service and extended-stay hotel assets under the Marriott, Starwood, Hilton, Hyatt, Choice and InterContinental Hotels Group flags. Since its inception, Peachtree has acquired or developed more than $300 million of hotel properties and first mortgage notes. Peachtree currently owns, operates and invests in 4,408 hotel guest rooms in 49 assets throughout the United States, comprised of a real estate portfolio of 27 assets and a note portfolio of 22 assets.
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